Only one in 100 older people eligible for the new retirement freedoms is planning to spend the whole pot on luxuries, research suggests.

With around 320,000 people retiring each year with a defined contribution (DC) pension - the type of pension to which the new freedoms apply - findings in a survey of people aged between 50 and 75 could still equate to 3,200 people a year spending their whole pots on treats.

The findings came as one financial firm said the calls it has taken so far from people looking to release cash were for the purposes of "everything from paying off debt to purchasing a speedboat".

Just over one quarter (27%) of those surveyed plan to spend some of their pension pot.

Of these people who will spend part of their pot, 74% will use the money for general spending, 70% intend to treat themselves and 22% want to carry out home improvements or pay off debts such as mortgages and other long-term costs.